Originally published on 2/3/26

We may only be one month into 2026, but the Centers for Medicare & Medicaid Services (CMS) is already planning the prices for the government-funded healthcare program in 2027. That’s right. CMS recently released a fact sheet with preliminary cost estimates for Medicare Advantage (or Medicare Part C) and Medicare Part D (the part that covers prescription drugs) in 2027. To learn more about the projected costs, including how they are calculated, keep scrolling. 

What to know about Medicare Advantage and Medicare Part D in 2027

Each year CMS is required to update the cost of Medicare Advantage and Medicare Part D. They do so by releasing a document called the Advance Notice and Rate Announcement process, which is reviewed by the public and CMS stakeholders before either being approved or denied. 

Currently, Medicare Advantage users pay anywhere from $14 to $34.50 a month for their health insurance. This is on top of the mandatory Part B premium cost, which is $202.90 a month. That amount can vary though, if someone is eligible for the Income-Related Monthly Adjustment Amount (IRMAA) surcharge, which can increase the cost for someone if their annual income is higher than a certain amount.

Part D, on the other hand, is normally free, but the cost per month can vary based on the 2026 IRMAA bracket. But the Medicare Part D out-of-pocket threshold amount, which determines how much someone pays for medications, is not part of the IRMAA surcharges. Once that threshold is met, a Medicare user enters into a catastrophic coverage phase and pay $0 for prescriptions. Currently, the Medicare Part D out-of-pocket threshold is $2,100 a year—a $100 increase from the year prior. 

In 2027 however, CMS is predicting in their Advance Notice and Rate Announcement that the average cost of Medicare Advantage will go up 0.09 percent and that the Medicare Part D out-of-pocket threshold will increase to $2,400, which is a 1.14 percent increase from 2026. 

As of publication, these numbers are just an estimate, since they still need to be approved by the program’s stakeholders. They have 30 to 60 days to do so, and if they vote yes on the increases, CMS must release all the official rates by Monday, April 6. 

Following that, insurers will look at the rates and submit a “bid” that will outline the expected costs for covering the benefits in 2027. They must do so by Monday, June 1. Once that’s done, Medicare users should have a more concrete estimate as to how much their health insurance will cost in 2027. 

Are the increased Medicare Advantage and Medicare Part D amounts normal? 

While the increased cost and out-of-pocket threshold might seem scary, they are quite normal. 

Every year CMS meets to discuss how much the prices will increase, and in 2026 they increased Part A hospital deductibles from $1,676 in 2025 to $1,736. They also raised the Part A coinsurance amount from $419 a day in 2025 to $434 a day in 2026 and the skilled nursing facility charge from $209.50 a day in 2025 to $217.00 a day in 2026. 

Part B also increased in 2026 from $185 a month to $202.90 a month. Part B’s annual deductible also increased from $257 in 2025 to $283 in 2026. 

One reason for the increase? Patient demand. The more people who need the services, the more it costs to run them, so CMS has to charge more to keep up with the supply and demand. 

Can you save on Medicare costs? 

When it comes to Medicare costs, choosing the right health coverage is essential to saving money. 

How to pick the best plan for you? Whitney Stidom, vice president of operations at eHealth, an online health insurance marketplace, told Woman’s World in 2025, “When comparing Medicare coverage options, people should factor in prescriptions, preferred doctors and any chronic conditions they may need ongoing care for–smart choices that can potentially lead to over $1,800 in savings per year.”

What’s more, she said, “Medical and financial needs can change over time, and the prescription drugs covered by Medicare plans can also change. Some online marketplaces enable people to provide a list of medications and preferred healthcare providers, and then get recommended plans based on those needs.”

Link to original: https://www.womansworld.com/healthcare/what-medicare-advantage-plans-2027-will-cost-you